Fund Evaluator:
Western Asset Ultra-Short Income A (ARMZX)
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Fund Details
Western Asset Ultra-Short Income A Overview
Western Asset Ultra-Short Income A (ARMZX) is an actively managed Taxable Bond Ultrashort Bond fund. Franklin Templeton Investments launched the fund in 1997.
The investment seeks current income and capital preservation while maintaining liquidity. Under normal circumstances, the fund will invest its assets in debt obligations, other fixed income securities and related investments. It may invest in all types of U.S. dollar denominated short-term debt instruments, including bank obligations, commercial paper and asset-backed securities, mortgage-backed securities, U.S. government agency or instrumentality securities, corporate loans, corporate debt securities, structured instruments and repurchase agreements.
About Western Asset Ultra-Short Income A (ARMZX)
There are 5 members of the management team with an average tenure of 1.53 years: Amit Chopra (2026), Nicholas Mastroianni (2021), Rafael Zielonka (2026), Mark Lindbloom (2026), Michael Buchanan (2024). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US 3M Trsy Bill TR USD index with a weighting of 100%. Western Asset Ultra-Short Income A has 553 securities in its portfolio. The top 10 holdings constitute 15.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Western Asset Ultra-Short Income A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Western Asset Ultra-Short Income A has 14.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 88.7% (74.6% domestic bond, 14.1% foreign bond and 0.0% convertible bond). Western Asset Ultra-Short Income A has 11.3% of the portfolio in cash.
Assets Under Management
The fund has $243 million in total assets, which is below the $941 million average for the Ultrashort Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
ARMZX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Western Asset Ultra-Short Income A expense ratio is above average compared to funds in the Ultrashort Bond category. Western Asset Ultra-Short Income A has an expense ratio of 0.65%, which is 45% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Western Asset Ultra-Short Income A has a portfolio turnover rate of 35%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 77% for the Ultrashort Bond category.
Recently, in the month of June 2026, Western Asset Ultra-Short Income A returned 0.2%, which earned it a grade of D, as the Ultrashort Bond category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Western Asset Ultra-Short Income A has a trailing yield of 3.86%, which is below the 4.24% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Western Asset Ultra-Short Income A Grades
Year to date, the fund has returned 2.0%, 0.2 percentage points better than the category, which translates into a grade of B. The fund has returned 4.5% over the past year (grade of B), 5.5% over the past three years (grade of B) and 3.6% per year over the past five years (grade of C) and 3.0% per year over the past 10 years (grade of A).
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ARMZX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| ARMZX Return (NAV) | 0.2% | 1.1% | 4.5% | 5.5% | 3.6% | 3.0% |
| ARMZX Grade | D | B | B | B | C | A |
| +/- Category | -0.0% | 0.1% | 0.3% | 0.2% | 0.0% | 0.4% |
| Ultrashort Bond Avg | 0.3% | 1.0% | 4.2% | 5.3% | 3.6% | 2.7% |
| ARMZX Tax Cost Ratio | na | na | 1.6% | 1.5% | 1.2% | 1.1% |
ARMZX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ARMZX Return (NAV) | 2.0% | 4.8% | 6.0% | 6.6% | -1.0% | 0.1% | 1.6% | 4.0% | 1.5% | 3.6% | 2.6% |
| ARMZX Grade | B | C | B | A | D | C | C | A | D | A | A |
| +/- Category | 0.2% | -0.0% | 0.2% | 0.7% | -0.8% | -0.1% | 0.0% | 0.9% | -0.2% | 2.1% | 1.1% |
| Ultrashort Bond Avg | 1.8% | 4.9% | 5.9% | 5.9% | -0.2% | 0.1% | 1.5% | 3.1% | 1.7% | 1.6% | 1.5% |
| Risk Measures | |
| Standard Deviation: | 0.6% |
| Total Risk Index: | 0.05 - Low |
| Category Risk Index: | 1.07 - Above Average |
| Category Risk Grade: | D (66% Rank) |
| Beta: | 0.06 |
| R-Squared: | 40% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 3.9% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $494 Mil |
| Fund Total Assets: | $ 244 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 35% |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 4.8 years | |||
| Average Tenure: 1.5 years | |||
| Managers (Year): Mastroianni Nicholas (2021), Buchanan Michael (2024), Chopra Amit (2026), Zielonka Rafael (2026), Lindbloom Mark (2026) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 553 |
| % in Top 10 Holdings: | 15.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 14.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 74.6% |
| Foreign Bond: | 14.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 11.3% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 877-656-3863 |
| Website: | www.leggmason.com |
| Status: | Open |
| Inception Date: | April 18, 1997 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 250 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 0.65% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.45% |
| Share Class: | Western Asset Ultra-Short Income C1 |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 50 |
